Airbnb Management Companies: Top 7 Rules for Success

As Airbnb continues to experience rapid growth, the number of Airbnb management companies is on the rise. However, all management companies aren’t made equally. There are some that have emerged as clear outliers. These companies are the exceptions because they have managed to deliver stellar results for the Airbnb hosts that use them.

Here is how the top Airbnb management companies achieved their success. These 7 secrets are what any Airbnb management company should master in order to attract Airbnb hosts.

1. A Unique Selling Proposition

There are literally thousands of management companies that Airbnb hosts could hire to manage their properties. The most successful Airbnb management companies have a Unique Selling Proposition that sets them apart from other companies.

Some techniques that best Airbnb management companies use to set them apart from the competition include:

• Detailed reporting along with suggestions for how Airbnb hosts can improve the ROI of their businesses.
• Access to local vendors in a variety of industries, including cleaning and accounting services.

Above all, the company must be able to use its USP to deliver tangible results for Airbnb hosts. In fact, the most successful companies understand that they must put the growth of their clients’ businesses first as the most important focus for the management company.

2. Automation Via Vacation Rental Software

Vacation rental software is one of the most important tools that Airbnb management companies use. In fact, it is how most Airbnb management companies are able to successfully manage dozens, if not hundreds, of Airbnb listings at once.

Daniel Parker, the founder of AirManaged, a short-term rental management company based in Edinburgh, Scotland, says he uses iGMS to manage his units on Airbnb, specifically for sending automated messages and creating automated reviews.

Using automated messages and creating automated reviews allows Airbnb management companies to deliver better customer service. Guests receive instant updates and responses to their questions. Then at the conclusion of each stay, the software also leaves a review for the guest which in turn encourages the guest to leave a review.

Automation is an extremely useful tool for Airbnb management companies because it allows them to scale up their business without creating additional overhead costs. Automation tools make it possible for listings to be updated in real-time so that Airbnb management companies can avoid the headaches created by double bookings and out of sync calendars.

“We have today more tools at our disposal than ever before. But in such a time of rapid change, I have always believed that independent owners and managers should choose software providers for the people behind the tool (their values, their vision, their actions) as much if not more so than for the actual features and benefits.”

— Matt Landau, VRMB

3. Trust

The most successful Airbnb management companies establish trust with their clients. This trust comes from managing their client’s businesses with the utmost care and concern.

There are several things that Airbnb management companies can do to establish trust with their clients. First, they must have processes and systems in place to deal with any unexpected situations that may arise. For example, if a guest loses a key, the management company should be able to send someone to meet the guest to give them access to the property and new key.

Secondly, they are always available with their Airbnb host clients to need them. They are easy to communicate with and provide around the clock services to both Airbnb host or Airbnb guests.

4. Expertise

Some of the biggest challenges that Airbnb hosts face are the uncertainties created by complex issues, such as taxes, insurance, and regulatory concerns surrounding short-term rentals. Successful Airbnb management companies help to make things easier for Airbnb hosts by guiding them through these tough issues.

They provide Airbnb hosts with education on various issues so that they can learn and understand them for themselves. In addition, Airbnb management companies also provide direct assistance where appropriate, such as by delivering detailed reporting features that make it easier for Airbnb hosts to provide important business details to their accountants.

5. Technology

Successful Airbnb management companies don’t only excel at building relationships with other vendors, they’re also adept at using technology. The more tools that Airbnb management companies have at their disposal, the easier it is for Airbnb hosts to customize that management company’s solution to best meet their needs.

As a result, successful Airbnb management companies regularly invest in new technology. From smart key exchange to vendor management software, the best Airbnb management companies utilize the latest technology to help Airbnb hosts impress their guests. By always being on the lookout for new technological trends, successful Airbnb management companies help their Airbnb host clients stay ahead of the competition.

6. Optimization

The most successful Airbnb management companies are continuously looking for ways to maximize Airbnb hosts’ time to income ratio. By analyzing pricing trends and market conditions, Airbnb management companies are able to deliver more bookings for Airbnb hosts and increased profits.

Airbnb management companies understand that individual Airbnb hosts find running an Airbnb business to be time-consuming and sometimes frustrating. The key to their growth has been in convincing their clients that they know how to make things easier. They also tout the fact that they can deliver a better ROI than their Airbnb host clients could potentially obtain on their own.

7. Positive Buzz

Word of mouth can serve as a powerful tool for attracting business as an Airbnb management company. When there is a positive buzz about an Airbnb management business, more Airbnb hosts are likely to give it a try.

That’s because when people hear about an Airbnb management company from their friends and colleagues, they know that the service delivers value. They also trust the recommendations that these individuals provide more so than online reviews or even the management company’s own marketing.

In addition, getting people to spread the word about a business for free isn’t easy. Therefore, Airbnb management companies that regularly receive word of mouth referrals are almost always some of the best in the industry.